Customer Analytics for New Product Development

Final Exam
Abhishek Manrekar ! "ection A! #$%$&&&'
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)nstructions*
+his exam is an open book, open notes exam- .owever, you are
expected to complete the exam on your own, without help from
classmates or others-
Please type your answers in this document- After completion,
submit this document to /M"-
+here are 0 pa1es in the Exam 2ooklet-
3ou have two hours for the exam-
+he total points for this exam is $&&, and this exam is worth %&4 of
your 5nal 1rade-
All the best6
7uestion $ 8%& points9
Focus on any product or service-
8$a9Describe the product or service in terms of :bene5ts; to the
customer-
"olution*
My service is the " Restaurant". So my "Benefts" to customer would be in terms of
the food quality, price of food, the time taken from order to serve, service of the
sta. !b"ective would be to fnd out how the customers view my restaurant
service on the basis of above parameters.
8$b93ou are asked to conduct a se1mentation study for this product or
service- Construct a survey 8<uestionnaire9 with $&=$' <uestions, clearly
specifyin1 what the :basis; and :descriptor; <uestions are- No open=
ended <uestions are allowed! all <uestions must be 1iven in a form so
that when data are collected, tools like Cluster Analysis can be used-
Please do not use <uestions seen in your assi1nments or from Me>/
"olution*
My basis variables are # $ood %uality, $ood &aste, 'rice, (ariety , Service of Sta
My )escriptor variables are *umber of visits, +ncome, Marital Status
"Basis" %uestions are question numbers ,, -, .,/, 0,1,2,,.,,3
")escriptor" %uestions are 3,4, ,5,,,,,-
,. 6ow is the $ood %uality 7
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
-. Rate the $ood wrt taste .
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
.. 6ow would you rate our variety in food items 7
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
3. =omment on the waitin9 time for 9ettin9 a table 7
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
/. Rate the quality of service of our sta .
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
0. Rate the quality of service of our sta .
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
1. Rate the ambience of our restaurant on comfort level .
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
2. Rate the price of our food items.
o >ow o :ood and reasonable o &oo e<pensive
4. 6ow many times a week you visit our restaurant for eatin97
o !nce a week o -?. times a week o /?0 times o ;verday
,5. 8re you married 7
o @es o *o
,,. +f married, do you have kids7
o @es o *o
,-. Aith whom do you visit our restaurant more 7
o $amily o $riends and =ollea9ues
,.. Rate our overall restaurant quality
o (ery 'oor o 'oor o 8vera9e o :ood o (ery :ood o ;<cellent
,3. Aould you recommend our restaurant to others7
o @es o *o
7uestion 8'9* %& points
Desi1n a Conoint "tudy, with % attributes, with :Price; bein1 one of the
attributes- /ist '=% levels for each attribute- ?se Me>/ to create
bundles for data collection- Act as a respondent in this Conoint
Analysis, and estimate your partworth utilities- 8.int* you have done this
in your @irin 2eer assi1nment9-
"olution*
+ have taken product ? :uitar.
=reation of Bundles by =reatin9 )ata =ollection in MeB> ?
8'a9 Provide 1raphs to illustrate your utilities for each attribute
"olution*
5
,5
-5
.5
35
/5
05
.-
5
-/
-,
5
/1
,,
3
5
Aespondent $
Respondent ,
8'b9 ExplainBdescribe your results 8i-e- the partworth utility 1raphs in
above <uestion9, drawin1 relevant insi1htsfor each attribute-
"olution*
,. ;lectric is the preferred choice out of the "type of make"
-. Brand is not much of importance for the respondent ,
.. &he price preferred for the 9uitar for respondent , is Rs.3/55
So, overall the respondent , can be said to be someone who is not brand
conscious, but would like to have the best of the product in the optimum price
ran9e.
7uestion 8%9* 'C points
+he followin1 <uestions deal with :)deal Points; and :)deal Dectors; 8or
:preference vectors;9 in a perceptual map-
8%a9De5ne :)deal Point; in $ sentence*
"olution*
&he ideal point represents the location of the ChypotheticalD product that most
appeals to a specifc respondent and captures optimal level of and attribute.
8%b9Ehat speci5c steps would you take in Perceptual Mappin1 analysis
to 1et an :)deal Point;F
"olution*
+deal point is identifed as Eideal brand".
Specifc Steps taken in perceptual mappin9 analysis to 9et "ideal point" would be #
=ombine attribute ratin9s of ideal brand with the other brands
=ompare how brands dier from the ideal brand
8%c9De5ne :)deal Dector;8or Preference Dector9in $ sentence*
"olution*
8n ideal vector is a vector whose an9le represents the importance of -
dimensions as perceived by the market and capture attributes where "more is
better", "less if betterE.
8%d9Ehat speci5c steps would you take in Perceptual Mappin1 analysis
to 1et an :)deal Dector; 8or Preference Dector9F
"olution*
+deal vector is identifed as as 'reference (ector".
Specifc Steps taken in perceptual mappin9 analysis to 9et "ideal vector" would be
#
+ntroduce "preferences" as an additional attribute for all brands
8nalyFe"preference" as if it is another "attribute"
8ttributes that most inGuence preferences can be identifed
7uestion 8G9* $C points
Explain a step=by=step process as to how you would use Conoint Analysis
to estimate the incremental price to be char1ed for a product with a new
feature, such that its market share remains constant- )n other words, how
much more can you char1e for a product with a new feature so that the
market share before the addition of the new feature, and after the
addition of the new feature stays constantF
"olution*
Step ,# Set attribute and attribute levels of con"oint study
Step -# =reate the )ata =ollection and bundle creation
Step .# ;stimate preference-3"HI